Official: Commission should reject New Mexico utility merger

SANTA FE, N.M. (AP) — A state hearing examiner has recommended that a New Mexico regulatory commission reject the purchase of the state's largest utility, Public Service Co. of New New Mexico by Iberdrola, a large Spanish company.

Potential downsides of the merger outweigh the benefits, Ashley Schannauer, a hearing examiner for the Public Regulation Commission, said in a report and non-binding recommendation made public Monday.

Under the merger, Connecticut-based Avangrid and its parent firm, Iberdrola of Spain, would acquire PNM Resources and its New Mexico and Texas power subsidiaries.

If approved, Avangrid would acquire PNM in an cash transaction valued at $4.3 billion that would affect about 800,000 homes and businesses, including some 530,000 customers of PNM.

Schannauer's recommendation cited missteps and problems the merger proposal encountered, including incomplete responses and overly extensive confidentiality requests.

Joanie Griffin, a New Mexico-based spokeswoman for Avangrid, wrote in an email the company was “analyzing the decision and examining the pathways for moving forward to approval. … We remain committed to putting PNM customers first and utilizing Avangrid’s and Iberdrola’s financial strength and resources to help New Mexico meet its decarbonization goals more quickly and efficiently.”

A commission spokeswoman, Sarah Valencia, did not immediately respond to an email asking when the commission will consider the merger.

If the merger is rejected by the commission, the company could submit a revised proposal. Also, the commission’s decision can be appealed to the New Mexico Supreme Court.

Schannauer wrote that if the commission is inclined to approve the merger, changes should be made to a June 4 settlement agreement the companies reached with numerous organizations interested in the proceedings.